Question
Company l-fall's market capitalization is currently $50million. Its debt is $90 million. All their debts are due in one year. Asset volatility is 40% while
Company l-fall's market capitalization is currently $50million. Its debt is $90 million. All their debts are due in one year. Asset volatility is 40% while expected return on asset is 14.48%. According to the Merton model, what is l-fall's actual default probability?
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Global Finance And The Macroeconomy
Authors: A. Makin
1st Edition
0333736982, 978-0333736982
